Pictures at the Palace - BREXIT - What if there's no deal? INSIDE - London Chamber of Commerce
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(Print) ISSN 1469-5162
(Online) ISSN 2051-9524
INSIDE
BREXIT – What
Issue 148 | September 2018
if there’s no deal?
Pages 14 and 30-31
www.londonbusinessmatters.co.uk
COV ER S TO RY
Pictures at the Palace
Page 6
2 September 2018 Issue 148 (Print) ISSN 1469-5162 (Online) ISSN 2051-9524
Regulars
Overseas business opportunities
Page 17
Events
Networking opportunities in the extensive
LCCI programme
Pages 22-24
Upcoming trade missions
Page 26
Two minute interview
Claire Kremer of Aspire
Page 28
Enterprise Europe Network
News and events
Pages 40-41
Member offers
What’s on offer from LCCI members?
Page 49
New members
Who has recently joined LCCI?
5 London businesses worried about the cost of living space. Joe Richardson reports Pages 49-50
Features
Labour Innovation
BREXIT Overhauling the capital’s
skills system
Brunel leads the way
UPDATE
4 12
Brexit update
Preparing for deal or no deal Bibby Financial Services Colombia
Page 14 Unlocking growth overseas New era of growth and
investment
EU Exit – LCCI seminar
Page 14
16 18
Momentum needed for Brexit
answers
Commercial Education US-China trade war
Page 19
Trust Who will suffer?
Preparing young people
Q&A
for work
UK government notices published
Pages 30-31 20 29
Settling in the UK
Lady Xuelin Bates Gareth Southgate
Guidance for EU nationals Philanthropist at heart Business can learn
Page 38 Interview by Yintong Betser from his England
transformation
Front cover picture of Prince & Patron at
Buckingham Palace, works of art selected by 32-33 34
HRH Prince Charles
London Business Matters is edited by Peter Bishop: pbishop@londonchamber.co.uk
Official Publication of International business BRANCH CONTACTS London Business Matters is published
London Chamber of Commerce Vanessa Vlotides – 020 7203 1838 Croydon Chamber on behalf of London Chamber
33 Queen Street, London EC4R 1AP Membership sales Annabel Fogden – 020 7556 2389 of Commerce and Industry by
Tel: 020 7248 4444 Josie Rogers – 020 7203 1881
Fax: 020 7489 0391 Member support East London Chamber of Commerce
www.londonchamber.co.uk Nick Charles – 0207 203 1957 Irene Fatuzzo – 020 7203 1965
CHAMBER CONTACTS Patron members
Ian Binns – 020 7203 1954 Crosby Associates Media Limited
Events Liverpool (Head Office):
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Information
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www.londonchamber.co.uk | www.londonbusinessmatters.co.uk gina.forshaw@crosbyassociates.co.uk
September 2018 News 3
Boost to business
confidence levels needed
on London businesses, particularly
SMEs, would be welcome.
by Joe Richardson • The proposed 90-week Brexit tran-
S
sition period will not be enough
econd quarter LCCI 2018 for many London businesses. A
economic survey results have three to five-year transition, under
shown a slight improvement on the current UK-EU arrangements,
the first quarter of this year but most would be deemed reasonable by
performance indicators continue to the greater number of them to ad-
lag behind pre-referendum levels. just to the new circumstances.
Chairing the survey launch event
at Moore Stephens earlier this sum- Joe Richardson is policy research
mer LCCI chief executive Colin ComRes executive chairman Andrew Hawkins highlighting the latest survey officer at LCCI
Stanbridge was joined by a panel of results
Chris Newlands, editor of Financial also being more pessimistic about runway at Gatwick. LCCI’s Capital 500 Quarterly
News, Andrew Hawkins, chairman the national as well as the London • London boroughs should employ Economic Survey (QES) is London’s
and founder of ComRes, Vicky economies. more flexible definitions of local largest and most authoritative
Pryce, chief economic advisor at Commenting on the business labour when setting Section 106 regular business survey, polling
Cebr, and Mark Lamb, partner and confidence of London’s financial requirements to allow apprentic- more than 500 London businesses
head of owner-managed businesses sector, Newlands highlighted how es to move across boroughs and each quarter.
at Moore Stephens. the uncertainty surrounding Brexit complete their training.
The report – was causing some • The GLA should outline support All reports, including the Q2
based on a repre- investment com- measures for businesses affected by 2018 edition, can be found at
sentative sample panies to question ULEZ. Furthermore, publication www.londonchamber.co.uk/
interviewed by lead- whether London of economic assessment of impacts Capital500
ing polling company was still the best
ComRes – recorded place for them,
upticks in export having already
demand, capital in- seen certain firms
vestment and each set up new offic-
of the survey’s busi- Q2 es in continental
ness confidence in- Europe. Beyond
dicators. However, 2018 Brexit, Mark Lamb
in all of these areas, highlighted some
the quarter’s results issues owner-man-
remained consid- October - December 2016
AprilQ2- June aged businesses are
2018 500: QUARTERLY ECONOMIC SURVEY
2018 CAPITAL
erably lower than facing, including
those before the EU referendum. access to finance, and use of the ap-
prenticeship levy.
Investment Colin Stanbridge welcomed “pos-
In her reaction to the results, itive signals in investment in train-
Pryce argued that the recorded ing, exports and profitability expec-
upticks should be seen in the con- tations” but added that “despite an
text of particularly slow activity improvement in many of these fig-
recorded in the first quarter of ures, much work needs to be done to
2018, whilst also highlighting that ensure London businesses continue
“there is little indication so far of to prosper, now and in the future.”
any meaningful pick up in business
investment.” Confidence
The survey also revealed marked LCCI has made several recom-
differences in business performance mendations in the report to boost
by business size and location. For the confidence levels amongst Lon-
instance, in terms of domestic de- don business:
mand, micro businesses (with fewer • The government should step up
than 10 employees) continued to efforts to support export growth
report a net decline on last quarter through subsidised trade missions
whereas larger businesses record- and increased funding for the De-
ed positive figures. Similarly, outer partment for International Trade.
London businesses continued to Furthermore, with Brexit on the
report a lower balance for both do- horizon, LCCI calls on the gov-
mestic orders and sales than their ernment to boost airport capacity,
inner London counterparts, whilst including the enabling of a new
4 News September 2018
Overhauling the capital’s skills system
by Thomas
Wagemaakers
S
ignificant changes need to be
made to skills and training
provision in London if the
capital is to continue to thrive.
That was the outcome of a new
report by LCCI and London Coun-
cils launched earlier this summer.
London Business 1000: Assessing the
capital’s skills challenge (based on an
annual survey of more than 1000
London business leaders) finds that improving digital skills and better 4. Reviewing the
businesses in the capital continue to employability skills for job candi- apprenticeship levy
face considerable skills challenges. dates should be a focus for London. One of the main challenges high-
With regard to technical skills lighted by the London Business 1000
Highlights skills most commonly identified much is happening already, includ- is the functioning of the appren-
The London Business 1000 report followed by advanced or special- ing efforts to create more high-qual- ticeship levy, with more than 40 per
highlights the following: ist IT skills. ity apprenticeships,the introduction cent of levy payers not expecting to
• 42 per cent of businesses that have LCCI will continue to work with of T-Levels and the establishment use their levy funds over the next 12
to pay the apprenticeship levy still London Councils to help address of institutes of technology. Howev- months, and an additional 40 per
do not plan to use apprenticeship London’s skills challenges. To this er, more will be needed to supply cent expecting to spend just half or
funding over the next twelve end, the new report lists a num- London with the technical skills less.
months – while an additional 40 ber of recommendations for policy it needs. For example, the intro- One way to address this is by
per cent expect to spend just half makers in Westminster, City Hall duction of T-Levels will require making the levy more flexible,
or less. and our boroughs to support Lon- sufficient funding to bring parts of including allowing payers to use
• If apprenticeship candidates were don’s skills system. the Further Education sector up to their levy spend for pre-employ-
better prepared for the world of industry standard and create more ment training to get people ready
work, half of London business- 1. Devolution places. for an apprenticeship. However,
es say it would make them more The report argues that increased Another key issue is the need to more is needed, and LCCI believes
likely to employ more of them. devolution of skills funding to the increase digital capabilities among the government should review the
• Skilled manual/technical roles capital is required. Local govern- London’s workforce (which is al- levy in London – and ultimately
are most likely to be identified ment, with its firm democratic man- ready a focus of the Mayor’s Skills consider turning it into a wider
as those where businesses faced date and local knowledge, is best for Londoners strategy), and the training levy.
skills challenges, followed by pro- placed to respond to the needs of report argues that apprenticeships Rather than be returned to na-
fessional and managerial roles both its local residents and business and other training should include tional government, unspent fund-
and unskilled/semi-skilled ones. community. Further devolution will a focus on this. This includes pro- ing should be devolved to London
• Three in five companies who tried help boost transparency and ac- moting digital apprenticeships and government and be used to in-
to recruit over the past 12 months countability and can raise the effec- T-Levels, and making digital skills a crease awareness of apprentices,
encountered difficulties finding tiveness of service delivery. core competence across apprentice- support small businesses to be
new staff. The devolution of the adult edu- ship standards. better prepared to take on appren-
• 31 per cent of companies who cation budget to London from 2019 More emphasis is also needed on tices and support potential ap-
tried to recruit during the last is welcome, but to make a more sub- employability skills. For example, prentices to be well prepared for
12 months said job candidates stantial impact a wider package of the Mayor, as part of his devolved the job. This should significantly
lacked technical or job specific skills devolution is needed, includ- adult education budget, should fo- boost skills outcomes across the
skills. A lack of literacy and writ- ing 16-18 skills provisions, all voca- cus on integrating employment and capital.
ten communication skills and tional capital investments, careers skills support.
commercial awareness also re- information, advice and guidance, Thomas Wagemaakers is senior
main prevalent. as well as the apprenticeship levy, 3. Apprenticeships policy research manager at LCCI
• Three in five business respond- starting with unspent levy funds. The government has the ambition
ents identify skills shortages to significantly increase the num- A copy of the report can be
among their current workforce, 2. A new skills focus ber of apprenticeships in the capital found at www.londonchamber.
with technical or job-specific Access to relevant technical skills, and the apprenticeship system has co.uk/research
recently undergone significant re-
For the London Business 1000
form.
report ComRes surveyed a
However, the London Business
total of 1,020 London business
1000 report argues that the govern-
leaders between 15 May and
ment should look to reduce bureau-
20 June 2018. All data has been
cracy and make the apprenticeship
weighted to be representative of
system simpler. For example, the
businesses both in London and
introduction of the apprenticeship
in each of London’s four sub-
levy has moved some of the admin-
regions, by borough, company
istrative burden from providers to
size, and broad industry sector.
employers which acts as a barrier
Sole traders have been excluded
to businesses taking up apprentice-
from the analysis.
ships.
September 2018 News 5
London businesses worried about
the cost of business space
that they are exempted from PDRs
beyond the 2019 exceptions.
by Joe Richardson Beyond office space, evidence has
M
shown there is strong demand for
ore than half of London industrial space in the capital. The
companies have business aspiration of “no net loss of indus-
space concerns, according trial floorspace capacity” in the draft
to a recent poll carried out by Com- London Plan is welcome but it does
Res for LCCI. The survey found not go far enough given the loss of
that 55 per cent of London’s firms such space in the capital in the re-
are worried about business space – cent past.
matching the figure recorded in last Ultimately, there is a balance to be
year’s survey. The most frequently struck to ensure that housing supply
cited concern was rental costs which issues in London are addressed at
was identified by 35 per cent of Lon- the same time as giving businesses
don businesses, ahead of business the space to grow, expand and create
rates and utility costs. today’s digital age. more jobs.
LCCI sees business space as one Amid the rise of online shop- Pressure
of the key issues facing the capital’s ping, there has been a squeeze on LCCI has also recommended Post-Brexit London
business community. Indeed, in or- high-street profits leading to many that the impact of office-to-res- With businesses already facing
der for small businesses to be com- high-profile retailers shutting up idential permitted development considerable cost pressures due to
petitive, it is imperative that they are shop. At the same time, the on- rights (PDRs) in London should the introduction of the apprentice-
not overburdened with inflated rate line-exclusive model has given rise be considered to identify the ways ship levy and immigration skills
and rent rises. to a number of successful businesses in which essential office and com- charge – as well as the uncertainty
Whilst this issue affects business- that contribute much less to the busi- mercial space can be safeguard- around Brexit – the government,
es of all sizes, SMEs have more to ness levy, owing to the need for fewer ed. While the capital undoubtedly working in concert with the May-
lose. Without the financial resources concrete outlets at fewer central loca- needs more residential properties, or, should alleviate concerns over
often enjoyed by larger companies, tions. Consequently, deriving busi- these should not come at the ex- business space as a first step in cre-
the cost of business space eats away ness rates exclusively on occupied pense of commercial spaces that are ating a post-Brexit London where
at SME profits causing substantial properties looks increasingly dis- critical to its growth. businesses can continue to thrive.
margin erosion and limiting growth. connected from London’s economic There is evidence that PDRs are Addressing the flaws in the business
As SMEs account for most of Lon- reality. already causing pressure on Lon- rates system as well as the negative
don’s business community, address- Moreover, the current business don’s business space. For example, impacts of PDRs must play an im-
ing this is pivotal to the capital’s rates system creates perverse incen- the Mayor reported local planning portant role in addressing this.
economy. tives for business in terms of where authorities lost 1.7 million square
LCCI has therefore called on the they locate operations and capital metres of office space at the expense Joe Richardson is policy research
government to take practical meas- investments. It presents a significant of residential units between 2008 officer at LCCI
ures to allow businesses to grow in and growing upfront cost for many and 2016. This will ultimately im-
the capital. companies, particularly in London, pact on the cost of office space. Polling data are based on a
which needs to be addressed for Especially in areas that are of ComRes survey for LCCI of
Business rates them to invest more in training, re- strategic importance to the London 505 business decision makers,
There should be a fundamental cruitment and capital, and increase economy, including the central activ- representative of all London
review of business rates to ensure productivity levels across the econ- ities zone, it is vital that the impact of businesses by size and broad
the tax remains fit for purpose in omy. these conversions is addressed, and industry sector, May-June 2018.
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6 Your business September 2018
Picture palace
Visitors to the State Rooms at
Buckingham Palace can now
see a special display of over
100 works of art personally
selected by The Prince of
Wales to mark His Royal
Highness’s 70th birthday year
T
he exhibition Prince & Pa-
HRH Prince Charles at his desk at Birkhall, 2016
tron presents a rich display (Eileen Hogan);Royal Collection Trust (c) Her Majesty
Queen Elizabeth II 2018
of paintings, decorative arts,
works on paper, furniture and tex-
tiles from the Royal Collection and
the work of artists supported by Preparatory sketch of Prince Harry © Nicky Philipps Preparatory sketch of Prince William © Nicky Philipps
three of The Prince’s charities – The
Royal Drawing School, The Prince’s
Foundation School of Traditional
Arts and Turquoise Mountain.
Passion
The Prince of Wales has enjoyed
a life-long passion for art and, as
chairman of the Royal Collection
Trust and patron of several arts char-
Charles II (Antonio Verrrio)
ities, has promoted the creation and
understanding of art worldwide.
Zoffany - The Tribuna of the Uffizi © Her Majesty Queen Elizabeth II 2018
Study of Queen Victoria and Prince Albert
(Sir Edwin Landseer) © Her Majesty Queen
& Patron exhibition. The paint-
Michael Noakes - Queen Elizabeth The Queen Mother ings, in tempera with gold leaf on
© Anya and Jonathan Noakes
panel, are of women who escaped
The Prince’s interest in art de- ISIS captivity and reflect His Royal
veloped while growing up sur- Highness’s support for the Yezidi
rounded by the Royal Collection. community.
From the works collected by His At the centre of the Palace’s Ball
Royal Highness’s ances- Supper Room is a striking 2.3-me-
tors, The Prince’s selec- tre-high cedar wood pavilion cre-
tion includes 16th-cen- (inset) Tiger’s Head from Tipu Sultan’s throne ated by classical carver Naseer
1785-93; (c) Her Majesty Queen Elizabeth II 2018
tury portrait drawings Yasna and the woodwork team at
by Hans Holbein the together publicly for and faculty members of The Roy- Turquoise Mountain. The pavil-
Younger that belonged the first time. Com- al Drawing School. Four drawings ion’s intricate carvings draw on the
to Henry VIII; Georges missioned by The from The Last of the Few series are rich heritage of Afghan design and
de la Tour’s painting Saint Prince in 2016 and 2017 included in the display, including demonstrate how the charity is re-
Jerome, c.1621–23, acquired respectively, they both Stuart Pearson Wright’s portrait of viving traditional skills in historic
by Charles II; and a tiger’s head depict Their Royal Highnesses Flight Lieutenant WLB Walker AE, communities.
in gold and rock crystal (1785–93) seated at desks in Birkhall, their pri- who was then the oldest surviving
from the throne of Tipu Sultan, rul- vate residence in Scotland. pilot from the battle. Prince & Patron is part of a visit to
er of Mysore in India, presented to In June 2018 His Royal Highness the Summer Opening of the State
William IV. Surviving visited the final degree show of Rooms at Buckingham Palace until
Two oil sketches of The Prince To celebrate the 70th anniversa- The Prince’s Foundation School of 30 September 2018.
and The Duchess of Cornwall by ry of the Battle of Britain in 2010, Traditional Arts and selected Han- For tickets and visitor
Eileen Hogan from His Royal High- The Prince commissioned a series nah Rose Thomas’s three portraits information visit www.
ness’s personal collection are seen of drawings of veterans by alumni of Yezidi women for the Prince royalcollection.org.uk
September 2018 Your business 7
London Build at
SPONSORED COLUMN
Should you be
Olympia tax planning
for Brexit?
L
ondon’s leading construction
and design show, London Build, By Clare Munro, senior tax partner,
returns to Olympia London in Lubbock Fine Chartered Accountants
October. Since its launch four years
ago, London Build has established it-
self as the largest construction show
for the capital, covering all sectors
within the built environment.
With the lack of clarity on our
future relationship with the EU,
“Despite the ‘noise’
The show will feature over 300 ex- Canary Wharf Group, Vinci, Inter- no-one can claim that planning from both the EU
hibitors, including Bentley Systems serve, Wates, Skanska, and BPD. for Brexit is easy. However, all
International Limited, Daikin UK, sides are talking up the possibility
and UK negotiating
Kingspan, G-SMATT Europe, Pow- Diversity of a ‘no-deal’ Brexit in less than 9 teams, it is to be
erday, Topcon, British Steel, Blok N London Build is active in the pro- months, so businesses should, at
Mesh, Aedas, RedSkyIT, Johnson motion of inclusivity, diversity and least, be thinking ahead.
hoped that a deal
Controls, Ideal Standard, Procore, equality in the industry. The annual can be struck.”
Trimble and Catnic. Hundreds of Women in Construction Morning In tax terms, VAT is an obvious
leading suppliers will be showcas- Networking session, now in its third place to start. Sales to and
ing their latest innovation, products year will take place on 24 October purchases from EU states may
and services across nine specialised and is set to be the largest gathering no longer benefit from the tax and income tax, will be
zones: buildings, infrastructure, of women in construction in the UK. intra-EU regime, and could be unaffected as these charges are
BIM and digital construction, fire Not your average construction treated like any other export and still governed by individual states.
safety, interior and fit-out, prod- show, London Build includes enter- import. From the UK end that’s However, even here, there are
uct innovation, site machinery and tainment, competitions, networking fine for the export of goods, directives, withdrawal of which
equipment and sustainability. parties, including the construction which should continue to be zero could affect UK groups with EU
industry’s very own Oktoberfest rated, allowing for recovery of associates. The Parent Subsidiary
Summits and Festival of Construction Hour. input VAT. Imports to the UK, Directive deals with withholding
Each zone acts as the focal point The involvement of over 100 high however, could raise significant taxes on dividend distributions
for eight ‘summits’ – with over 200 profile partners such as Construct- issues particularly for cash flow where the parent has at least a
hours of free CPD conference and ing Excellence Club, Construction and administration. Also, with 10% interest in the subsidiary and
workshop sessions discussing the Meet the Buyer, BIM Open Mic and a no deal Brexit, moving goods contains an obligation to provide
latest developments, challenges and Passivhaus, enables London Build to into the EU is likely to attract either credit relief or a 95%
opportunities across the UK’s built continue delivering on the exciting irrecoverable EU duty and VAT, exemption from the withholdings.
environment. It is a one-stop-shop content and high-level networking the latter being recoverable only
to gain CPD points over two days. for all in attendance. if you are VAT registered in the Despite the ‘noise’ from both the
Speakers include senior repre- The Built Environment Network- destination country. EU and UK negotiating teams, it
sentatives from Greater London Au- ing Hub will host free-to-attend is to be hoped that a deal can be
thority, Crossrail, Homes England, exclusive networking events across The purchase and sale of services struck. So can businesses safely
Heathrow Airport Ltd, Tideway, two whole days. Visitors will be able are less likely to be affected by adopt a ‘wait and see’ approach,
Mace, Laing O’Rourke, Costain, to build connections, gain inspira- VAT changes, as they are usually effectively carrying on as normal
HS2, Skanska, Land Securities, Bal- tion from industry thought-leaders subject to a reverse charge in for the time being? Fewer and
four Beatty, Transport for London, and win business. the recipient’s location. However, fewer businesses are pure UK
Clancy Docwra, TateHindle, L&Q, the VAT Mini One Stop Shop, or operations and so we feel some
Space group, Sir Robert McAlpine, LCCI will be exhibiting at London MOSS, for intra-EU electronic review is warranted, particularly
David Miller Architects, Sweco UK, Build. Be sure to visit the Chamber services to private individuals, for export/import businesses.
HKR Architects, Zaha Hadid Archi- stand at #C3. is unlikely to be available to UK Duty and VAT issues are a good
tects, Royal Docks Team, Paradigm businesses. The EU Commission starting place but ideally one
Housing Group, Mott MacDonald, Register for free tickets to is presently discussing the should consider the whole supply
Arup, AECOM, Kier Group, Mace attend the show at www. extension of MOSS to the sale chain, picking up regulatory,
Group, Scott Brownrigg, Bouygues, londonbuildexpo.com/lcci of goods within the EU, which funding and staffing matters too.
could mean a post-Brexit UK
business requiring a registration If you would find it helpful to
somewhere in the EU. discuss Brexit preparations with
us please speak to Clare Munro
One might assume that direct on 020 7490 7766 or email
taxes, such as corporation claremunro@lubbockfine.co.uk.
Lubbock Fine
Paternoster House
65 St Paul’s Churchyard
London EC4M 8AB
t +44 (0)20 7490 7766
www.lubbockfine.co.uk
8 Your business September 2018
Garden party
By kind permission of the Dean and Chapter of Westminster,
LCCI’s annual summer reception took place in College Garden,
Westminster Abbey.
The evening provided a platform for high-level networking for
members and invited London MPs and was hosted by Chamber
president, Tony Pidgley and sponsored by Brunel University London
and Smartdeskers.
Pidgley is pictured (left) with The Reverend Professor Vernon White,
Subdean and Canon of Westminster, and LCCI chief executive Colin Tony Pidgley with former LCCI SmartDeskers founders Simon
Stanbridge. president Derek Sach Cornford (left) and Khuram Zubair
Professor Robert Holdway (centre) and students from Brunel University London
Sunny Crouch holds up her portrait by silhouette artist Alison Russell
Need good advice? When your business needs expert advice provided by a qualified, reliable and trustworthy legal team – use a solicitor Solicitors. Here to help Talk to your solicitor or visit www.lawsociety.org.uk/here-to-help The Law Society @LawSocietyFAS
10 Your business September 2018
SPONSORED COLUMN
Indian summer
Can the Tier 2 Grange St Paul’s Hotel was the superbly situated venue for LCCI’s
sponsorship route Asian Business Association (ABA) seasonal reception. Chairman
Tony Matharu welcomed guests to his hotel and updated them on
ABA activities. Many guests used the occasion to get photos against
fill the Brexit the stunning cathedral backdrop.
recruitment gap?
As many EEA immigration 2 sponsorship licence because
solicitors predicted at the time they are looking for a very specific
of the ‘leave’ vote in the Brexit skillset that they have been
referendum, the latest figures unable to find within the settled
show that there is a significant workforce, or within the EU/EEA
skills gap in the UK as EU citizens workforce. Since Brexit, our own
are less likely to come to the UK to experience at OTS Solicitors, has
work. Immigration solicitors keen been that there is an increasing
to assist employer clients with interest in Tier 2 sponsorship
their recruitment issues caused as employers looking outside
by Brexit will be advising more the EEA are finding high calibre
extensively on the benefits of Tier workers, with skills that UK
2 sponsorship as a means to bring businesses are looking for.
skilled workers into the UK to keep
their businesses on track. It takes approximately one month
to obtain a Tier 2 sponsorship
The impact of Brexit on licence and taking advice from
recruitment in the UK business immigration lawyers
is advisable. Experienced
Figures released recently show immigration solicitors take the
that net migration from the client organisation through
EU to the UK fell to its lowest the whole application process,
level for 5 years in 2017. A including collating the appropriate
recent survey by the Chartered and necessary documentation,
Institute of Personnel and and setting up the appropriate
Development (CIPD), revealed internal structures to satisfy the
a particular impact on low Home Office of compliance with
and medium skilled roles. the terms of the sponsorship
licence on an ongoing basis. The
Tier 2 sponsorship – recruiting Home Office effectively delegates
outside the EU and EEA for the power of granting certificates
skilled roles of sponsorship to the employing
organisations. As a result, it
The Tier 2 sponsorship route needs to be satisfied that the
allows employers to recruit for organisations will act responsibly
skilled workers from outside and in accordance with the
the EU and EEA under a self- immigration rules in managing
managed system of certificates recruitment from outside the EEA.
of sponsorship. An employer The Home Office does carry out
must be licensed to issue compliance visits so it’s vital to
certificates of sponsorship and keep on top of the sponsorship
must demonstrate ongoing licence requirements.
compliance to the Tier 2 rules
and requirements. It further OTS Solicitors are experienced
offers a practical way to ensure business immigration and
that their workforce is made up employment lawyers, highly
of people and skills best suited to recommended in the Legal 500
meet their business goals. for immigration matters. Book
an appointment with one of
Obtaining a sponsorship licence our top London immigration
lawyers by calling
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OTS Solicitors
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London
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t. 0203 959 9123
http://otssolicitors.co.ukSeptember 2018 Your business 11
London planning for
developers and investors
I
ndigo has recently launched the traditional voting bases of the two
A-Z of London Planning – the first major parties over the decade.
in a series covering a comprehen-
sive range of planning attributes for Insight
England. Each borough profile also provides
This London-focused edition a detailed insight into its housing
serves as a guide for anyone working circumstances, detailing cost, densi-
within or with a vested interest in ty and tenure split of housing. They
the London property market. Both also provide an insight into how each
graphics and data-driven, it has been borough is likely to cope with their
designed to provide a visual overview share of London’s housing target.
of the demographic, socio-economic When Sadiq Khan took up office
and planning traits defining the 32 in May 2016, he set himself a raft of
London Boroughs and the City. ambitious targets including many
The guide uniquely combines many more affordable homes, a freeze on
different and disparate indicators all in TfL fares and a new approach to
one central place. Indigo has sourced assessing viability. The A-Z offers
information from government depart- producing this guide, was to pro- and statistics in time, rather than a some insight into Khan’s progress
ments and the GLA, amongst others, duce a high-level and easy-to-di- definitive record.” at the halfway point of his tenure.
as well as local insights from its in- gest summary of the crucial facets The politics section in each It features a visual showing major
house team of specialists. of London planning for develop- borough profile demonstrates the schemes called in by the various
ers and investors, which can all be highly changeable composition of Mayors since 2008, showing that un-
Crucial benchmarked against other UK councils between the 2014 and 2018 der Sadiq there has been much more
Indigo’s executive director Nick cities. We envisage that this will elections, in parallel with London’s of an emphasis on affordability.
Belsten, who heads up the central become an industry-leading tool, rapidly changing demographic pro-
London team, said “Our aim when representing a snapshot of policies file and the transformation of the www.indigoplanning.com
Business Growth
Lessons from a Pencil
Top performance requires a bit of Make your mark on the world
sharpening
While some mistakes may be erasable,
Preparing for peak performance is often everything we do makes a mark on the world.
excruciatingly painful. But it is through Your contribution, or lack of it is visible for
constantly removing unnecessary layers, and everyone to see. Therefore it’s important to
honing the most essential parts of ourselves, keep yourself sharp and do the best you can “They say that a life well-
that we become truly useful.” every time.
lived is one that leaves the
They say that a life well-lived is one that leaves
The pain of letting things go, of sharpening
your core strengths, is how the world a little bit better world a little bit better than
you become the best you can be than when they came into when they came into it”
in life. That pain is worth it. it. Your business can be that
‘little bit better’ – and building It’s easy to show something to the world, but it
Mistakes are impermanent it as an asset rather than a is the part that’s inside you gives the ultimate
and natural job, can be how you leave a results. If you spend your time focused on the
It’s inevitable that mistakes legacy behind. surface-level stuff, you probably won’t get far.
happen. Mistakes are a part The real you is on the Shift your focus to what’s inside you and you’ll
of the process of creating inside find yourself sharper and more productive.
something amazing. And you
need to be willing to erase your The colour of the pencil Excerpted from www.londoncoachinggroup.
work when you recognise that is less important than the com/insights. If you are ready to take action
you’ve done something wrong. quality of the clay and on your business goals, get in touch with us at
graphite making up the lead coach@londoncoachinggroup.com and let’s
Failing fast is how you succeed. inside. deep dive into your business together.12 Your business September 2018
Brunel University London
supports SME innovation
to real-world challenges set by par-
ticipating companies, and academic
by Ian Ferris collaborations.
B
runel University London is Elite
inviting applications from The programme, which runs
London SMEs to Co-Innovate through to 2020, aims to provide
Journeys, an innovation support SMEs with access to the same lev-
programme tailored to the needs el of elite academic support and
of smaller companies, and jointly expertise that large firms enjoy
funded by the university and the through partnering with univer-
European Regional Development sities, grounded in pragmatic un-
Fund. derstanding of the realities of SME
This scheme enables smaller life.
firms – many of which may never Student projects are a great way
have considered working with a uni- to initiate a working relationship
versity – to unlock their innovation with the university. They provide
ambitions, working with Brunel’s a fresh perspective and approach,
highly-rated design, business and backed up by academic rigour. This
computer sciences departments via offers an effective way of getting
a range of collaboration opportuni- innovation projects off the ground,
ties. These include innovation skills while giving our students authen-
workshop programmes to develop tic business experience and chal-
best practice thinking, student pro- lenging their creative and rational
jects to gain insights and solutions thinking. Recent examples have
included App development, prod- functioning as the innovation R&D
uct prototyping, digital marketing lab.
strategy and brand design. Challenge
Collaborating directly with
Significant Brunel’s academics enables firms
Co-Innovate Journeys also facili- to supplement their internal teams
tates academic collaborations where with internationally-recognised
companies with some form of in- experts. Funding for innovation
novation challenge can leverage the is always a challenge: Co-Innovate
expertise and knowledge of Brunel’s can help businesses with this via
academics to address their problems. Brunel’s research support and devel-
With over one thousand academics, opment team who will help identify,
across thirty discipline areas, the po- frame and write applications for a
tential to support a wide variety of variety of commercial funding pro-
innovation challenges is significant. grammes, an activity that is signifi-
Supporting businesses, and the cantly strengthened by the inclusion
SME community in particular, is of Brunel’s academic expertise in the
a fundamental principle at Brunel project consortium.
University London. Small to medi-
um organisations can find innova- co-innovate.brunel.ac.uk
tion a tricky proposition, whether
due to lack of skills, knowledge and Ian Ferris is innovation director at
time – or simply to cost. Research Brunel University London
by the EU identified a number of www.brunel.ac.uk
barriers, both internal and external:
not having people with the right For details of forthcoming
skills; lacking access to finance and workshops or to discuss
funding; poor or fragmented ap- collaborating on an innovation
proaches to innovation marketing; project contact Jeremy Davies
and, importantly, missed opportu- Jeremy.davies@brunel.ac.uk.
nities around productivity growth,
internationalisation and exporting.
Co-Innovate Journeys helps them
to bridge this gap, providing prag-
matic, practical support, effectivelySeptember 2018 Your business 13
SPONSORED COLUMN
Property professionals The Points Based System
– An Employer’s World of
Immigration Compliance…
and Confusion!
Sundeep Rathod, Senior Associate
Since the introduction of the Points "Often employers
Based System in 2008, individuals
and companies have often become are unaware
stuck navigating complex rules.
In fact, in a recent article by the of such heavy
Guardian, it was found that the
immigration rules have doubled
requirements
in length since 2010. Yet the and as a result
Government continues with its
rhetoric that Britain is open for are caught out
business albeit their immigration
laws appear to the contrary. As the
by UKVI’s strict
UK looks set to leave the EU, with compliance
or without a deal in place, one thing
for sure is that employers will need requirements."
to continue to be compliant and
satisfy UK Visas and Immigration
(UKVI) of their suitability should
they need to sponsor anyone from
outside of the UK.
sponsorship of migrant workers.
At present, non-EEA nationals can Often employers are unaware of
be sponsored under Tier 2 of the such heavy requirements and as
Points Based System. This tier is for a result are caught out by UKVI’s
skilled individuals coming to the strict compliance requirements
UK with a job offer from a sponsor. during audit.
Only sponsors who pass the UKVI’s
suitability criteria can be granted Whilst it is unknown what future
permission to sponsor non-EEA immigration system will be in place,
workers. Once permission is it is inevitable that the burden will
granted, employers are bound by an further increase on employers
MIPIM UK is back at Olympia asset classes
ongoing compliance requirement. when new immigration rules are
next month with a topical • discover major property
theme – the game is changing; projects and investment introduced for EU citizens post
are you keeping up? opportunities across the UK It is imperative that employers Brexit. To ensure businesses are
• learn from 200 experts comply with the complex and in good stead to deal with further
Digital and social ever changing immigration laws changes, they must ensure they
• share projects and gain
transformations have put people otherwise they could face sanctions have robust record keeping and
expertise.
firmly at the centre of property, from UKVI. Such penalties can range HR processes in place to satisfy
Last year the event attracted:
the end user is now king and in
• 3,000 participants from downgrading or revocation of UKVI of their suitability to sponsor
this fast-paced world, standing
• 300 investors and financial their sponsor licence, depending foreign workers.
still means falling behind.
institutions on severity of non-compliance,
How is the UK real estate • 403 exhibiting companies or receiving a civil penalty should If you are a Sponsor Licence holder
market adapting to this change? • 50 conferences they be found to be employing an and you would like a review of your
Who are the game-changers • … and was 95 per cent private illegal worker. In light of such severe current HR and record keeping
setting new parameters for the sector. penalties, there is a heavy burden processes to ensure compliancy
real estate market? How are on employers to retain certain with UKVI’s standards, we would be
MIPIM UK takes place at
they making a difference? documents as evidence of their delighted to assist your business.
Olympia from 17-18 October
MIPIM UK is the largest 2018
domestic exhibition and
www.mipimuk.co.uk
conference for property
professionals providing
a marketplace for all key T: +44 207 495 3003
stakeholders in the UK real E: enquiries@magrath.co.uk
estate business to: www.magrath.co.uk
• connect with 3,000 UK
property players from all14 Brexit trade September 2018
Preparing for deal or no deal
“As the clock It is clear in the White Paper
that some form of Trusted Trader
ness-critical issues they face. AEO
schemes are not exclusive to the EU
by Martin Dubbey runs down it is Scheme will need to be implement- and can facilitate trade with other
I
ed to help maintain ‘no hard border’ parts of the world. The EU scheme
n my February 2018 article for essential that in Northern Ireland and to help aid is already in place in the UK and it is
LBM – Anticipating new trade ar- companies review frictionless trade across the Chan- highly likely that this will form the
rangements post-Brexit – I wrote nel. Trusted Trader schemes such basis of any trusted trader scheme
that we were running out of time to their knowledge as Authorised Economic Operators that will be adopted.
deal with business-critical border
issues as we approached EU Exit
of customs and (AEO) are in use throughout the
world and are part of the World Cus-
As the clock runs down it is es-
sential that companies review their
(which now seems to be the pre- international trade toms Organisation’s SAFE frame- knowledge of customs and interna-
ferred government term for Brex- work. Over the last five years, 168 tional trade procedures. Consider
it). Seven months on, and little has procedures.” countries have signed up with 56 what contingencies are in place in
been achieved to give those involved AEO programmes in place and 12 the event of a no deal scenario and
in international trade any concrete moving goods to and from member more in the pipeline. how that will impact the supply
indication of what is going to hap- states. Whilst accepting that there is chain. Some companies have started
pen when the UK leaves the EU on a putative electronic solution, it has Contingencies to consider stockpiling, but general
29th March 2019. However, some not yet been devised or agreed. There HMRC has seen an increase in opinion is to wait and see what the
indications emerged when the gov- needs to be a clear explanation of the number of AEO applications EU response is to the White Paper
ernment released recent advice for how it is going to be implemented. As in recent months. This is sensible at the end of October. In the mean-
companies in the event of ‘no deal’ it stands, there are not enough HM pre-planning by companies as any time, companies are advised to re-
and the impact on trade and bor- Revenue & Customs (HMRC) offi- review of trade procedures, supply view the advice given in the ‘no deal’
ders is significant. What that means cials in the UK to police the border chain security and contingencies papers released by government,
is that the business-critical issues I once the process changes. Even with is a mitigation factor of the busi- their physical security supply chain
described then have become even a robust recruitment policy, practices and consider an AEO application.
more critical now. and procedures will take time to im-
plement. Martin Dubbey is chief executive
Negotiation Those businesses who already of Harod Associates
The government White Paper The trade outside the EU know what to www.harodassociates.com
Future Relationship between the UK expect in terms of documentation
and EU was published in July and and processes for international trade
submitted to the EU. There should if there is a switch to WTO rules in
be strong indications by the end of the event of a ‘no deal’. They should be
October as to whether the EU finds able to cope with changes, but the risk
its content sufficient for ongoing ne- will be any delays caused by an influx
EU Exit – preparing for UK-EU
gotiation. Without this, a ‘no deal’ of companies into the system that are
looks more likely. A deal will allow experiencing this for the first time.
a transition period running through
2020 but, without it, the UK will
drop out in March 2019 and be re-
Influx
We are also in a situation where
trade post-30 March 2019
An LCCI seminar to help businesses to prepare for all scenarios after
liant on World Trade Organisation the existing Customs procedures sys-
the UK officially leaves the EU covering all aspects of import and
(WTO) rules. tem (CHIEF) is to be replaced by the export transactions e.g.
Many have spoken about the likeli- Custom Declaration Service – CDS.
hood of a ‘no deal’ and the recent gov- The requirement for this system was • Customs procedures • Authorised Economic
ernment advice seems to make this developed prior to the EU Exit vote • VAT Operator (AEO)
more of a reality. Yet, constitutionally, so there is concern as to how it will • Tariff classification • Temporary movements of
we are in a strange position as there stand up to a massive influx of new • Documentation goods
does not appear to be a parliamentary entries. A similar position exists with • Rules of origin • Standards and regulations
majority to approve a ‘no deal’ sce- other Customs service computer sys- • Freight movements
nario. We are definitely moving into tems in Europe. Those companies The event will feature expert speakers with customs and logistics
the unknown. who have only ever traded within the backgrounds including Martin Dubbey of Harod Associates, and will
To help navigate the unknown, EU need to urgently examine their be chaired by Peter Bishop.
Harod Associates is linking up with staff skill base for knowledge of these
Date: 6 November 2018 – 14.00 – 18.30
the LCCI to support its EU exit international trade procedures.
Venue: One Birdcage Walk, SW1
seminar in November – providing
guidance on business-critical trade Alignment To book on to the event and table a question in advance visit
and border issues – see box below – So, where is the good news? www.londonchamber.co.uk/international-business/see-all-events
and the Chamber’s Brexit helpdesk These Customs procedures are not
which will be operational in the au- difficult to understand and master
tumn. over time. The government appears
determined to open up trade with
Solution the rest of the world, whilst main-
Some of Harod’s personnel are taining alignment with the largest
former Customs officers who are trading block on the globe. If this
old enough to remember what it was can be achieved then opportunities
like before free trade with the EU; will emerge and the procedures for
the paperwork was extensive just for frictionless trade will evolve.CONRAD
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Jersey
Chamber of
Commerce16 International September 2018
The trading game –
unlocking growth overseas
by Phil Tobin
W
hen small business own-
ers think of Bibby Finan-
cial Services (BFS), they
think of an independent financial
services partner to SMEs. While this
is true – BFS have been supporting
and providing invoice, asset and ex-
port finance to UK SMEs for more
than 35 years – what most people below $1.29 for the first time in al- Growth presented. Exporting can help SMEs
don’t realise is that BFS’s experience most a year and hit a nine-month For any business struggling with reach larger markets that would
in supporting global trade dates low against the euro as a result of customers with extended payment have otherwise been impossible, as
back much further. worries that Britain will leave the terms overseas, export finance can well as drive significant growth. BFS
Indeed its trade heritage can be EU without a trade deal. Unless a also be an effective way to manage research has shown that, on average,
traced back to parent company Bib- deal is made by the time of the next cashflow, while also improving ef- exporting accounts for 37 per cent
by Line Group which was founded EU-summit in October, it is predict- ficiencies with international com- of annual turnover for those UK
by John Bibby and began trading as ed that the value of the pound could mercial terms. It unlocks cashflow SMEs that sell overseas, highlight-
a shipping line in 1807 before diver- fall even lower. in unpaid invoices and by providing ing the clear potential there for all.
sifying into financial services and Indeed, BFS research has found specialist credit control support, As the government seeks to fi-
creating BFS in 1982. that more than two-thirds of SMEs helping businesses manage their nalise its customs policy and avoid
Bolstering trade and helping UK trading overseas have been finan- debtors overseas. Export specialists a no-deal Brexit, it’s important that
businesses to export has remained cially disadvantaged due to curren- can also help businesses to overcome a favourable exporting environment
an important part of the business cy volatility sparked by Brexit ne- the complexities of selling interna- is created to help encourage SMEs to
strategy ever since. Export finance gotiations. Yet, despite this, almost tionally by providing language, cur- embrace export opportunities and
and trade finance are now offered a quarter say they have never re- rency, time zone and legal support. maintain this export boom.
alongside foreign exchange servic- viewed their foreign exchange re- While it will never be possible
es which were launched just two quirements. to completely de-risk the export- Phil Tobin is managing director for
years ago. ing process, with the right support, trade finance at Bibby Financial
Fast-forward to 2018 and BFS Choice the rewards associated with trading Services
remains committed to encourag- Foreign Exchange (FX) services overseas far outweigh the challenges www.bibbyfinancialservices.com
ing and supporting UK SMEs as can assist businesses in managing
they strive to overcome barriers their exposure to currency volatili-
to exporting and unlock potential
growth from overseas markets.
ty if they are doing business abroad,
allowing them to convert the cash Rio awaits
released from invoices to a curren- Less than a year to the 11th World Chambers Federation Congress
Uncertainty cy of their choice. in Rio de Janiero next June, the hosts and organisers took the
HMRC recently reported that the As an example, BFS custom- opportunity to promote the event at this summer’s American
UK exported £330.5 billion worth er, Spirit Circuits, which designs Association of Chamber of Commerce Executives convention in Des
of goods in the year ending March and manufactures printed circuit Moines, Iowa.
2018, an 8.2 per cent increase on the boards for products in the fire and
previous year. But while these fig- security controls, LED lighting and Pictured are Juliana Kampf of the CACB (Confederation of
ures are promising, the challenges electronic vehicle markets. When Commercial and Business Associations of Brazil), and Anthony
Parkes and Anne-Cécile Kaplan of ICC WCF.
faced by SMEs for trading overseas doing business in China, Spirit Cir-
are great, particularly during times cuits buys in US dollars and then www.iccwbo.org/chamber-services/world-chambers-federation
of political and economic uncer- sells in GB pounds and euros, as 30
tainty. BFS’s recent Trading Places per cent of its sales are exports to
report identified the primary risks markets including Europe, South
that both UK importers and export- Africa and the USA.
ers face in today’s economic envi- With access to an FX facili-
ronment: currency fluctuations, ad- ty from BFS, Spirit Circuits now
ministration, logistics management, manages its exposure to currency
and managing duty, VAT and freight volatility, reducing the impact it
payments. has on the business. This is just one
Perhaps the greatest risk, and one success story; in fact, BFS have seen
that has been heavily impacted by such demand for foreign exchange
Brexit discussions in recent times, services that they are looking to
is the depreciation of sterling and expand the operation throughout
subsequent currency volatility. In Europe, growing the proposition
early August 2018, the pound fell even further.You can also read
